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Determinants of Replacement Heifer Price Differentials

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  • Pierce, Vern
  • Parcell, Joe

Abstract

If the cattle industry is to develop a widely accepted value based marketing system, cattle producers need to produce cattle of known quality that will add value to the animal and simultaneously improve production efficiency. This study uses transaction level data to empirically estimate the marginal implicit trait values of replacement bred heifer characteristics. Results indicated premiums were received for pens of heifers having ten animals, and black in color. Offspring having an expected progeny difference for birth-weight near zero were not discounted. Pens of heifers of Amerifax breed relative to Angus, and having a calving season of early to late March relative to late January to late February were the primary factors that were discounted.

Suggested Citation

  • Pierce, Vern & Parcell, Joe, 1999. "Determinants of Replacement Heifer Price Differentials," 1981-1999 Conference Archive 285746, NCR-134/ NCCC-134 Applied Commodity Price Analysis, Forecasting, and Market Risk Management.
    • Handle: RePEc:ags:nc8191:285746
    DOI: 10.22004/ag.econ.285746
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